Land loans

[Codewiz]

Are land loans that difficult to come by? My wife and I are looking at land that we would want to hold the land for 5-10 years before building a home.

I can't seem to find much of anything about land loans in general except they are difficult to get. None of my credit unions have any info on their websites about land loans.

Relevant info is that my wife and I have >775 credit scores and gross over 140K. Would we really need to bring 20% to the table?

Any idea of the ballpark rates?

 

[edro]

Our loan officer told us we probably need 20% down on land.
We didn't try for pre-approval, it was more of a quick verbal comment.

 

[kranky]

One of the credit unions I belong to has these rates:

Mortgate rate for owner-occupied home

4.50% 30 Year Fixed Rate
4.38% 20 Year Fixed Rate
4.25% 15 Year Fixed Rate
4.25% 10 Year Fixed Rate​

Vacant Lot/Land Loans:

10.50% APR - fixed rate up to 12 years.​

 

[vi edit]

I did a dirt loan in '08. 7 years, 20% down, 5.5%. The 20% down was non-negotiable and our credit ratings and household income are both better than yours. This was through a local credit union.

 

[GuitarDaddy]

Yep, 20% down with great credit, 30% or more down with not so great credit. And it generally gets worse the farther the land is from civilization. Banks hate to get stuck with unimproved land